Neogen Chemicals Limited filed its unaudited financial results for Q2 FY27 (quarter ended September 30, 2026) pursuant to Regulation 30 of SEBI Listing Regulations. The disclosure includes both standalone and consolidated results.

Financial Performance (Consolidated)

  • Revenue: ₹296 crore in Q2 FY27, representing 42% year-on-year growth
  • Gross Profit: ₹133 crore in Q2 FY27, representing 36% year-on-year growth
  • EBITDA: ₹45 crore in Q2 FY27, representing 51% year-on-year growth
  • PAT: ₹8 crore in Q2 FY27, representing 144% year-on-year growth
  • EPS: ₹2.96 per share (not annualized) for Q2 FY27
  • Battery Chemicals Contribution: ₹37 crore revenue from Neogen Ionics (NIL) in Q2 FY27, compared to ₹5.4 crore in Q2 FY26

Key Business Updates

Expansion Initiatives:

  • Board approved expansion of Organolithium facility at Patancheru, Telangana from 300 MTPA to 600 MTPA
  • Estimated investment: up to ₹45 crore
  • Additional revenue potential: ₹150-200 crore based on lithium prices

Dahej Fire Incident Update:

  • Cumulative recoveries: ₹164 crore to date (₹155 crore insurance claims + ₹9 crore salvage realization)
  • Additional incidental charges: ₹1 crore (claimed under insurance policy)
  • On October 29, 2026: Company accepted additional claim amount of ₹152 crore from insurance company
  • Total on-account claim received/receivable: ₹316 crore (inclusive of accepted claim and salvage sales)

Fund Raise:

  • Raised ₹600 crore via QIP (first-ever)
  • Issue oversubscribed by 6.5x
  • Proceeds utilized for debt repayment, incremental business requirements, and growth opportunities

Credit Rating:

  • CRISIL revised outlook to 'CRISIL A-/Stable' from 'Negative' for long-term bank facilities (₹680 crore) and NCDs (₹200 crore)
  • Short-term ratings reaffirmed at 'CRISIL A2+'

Battery Chemicals Business (Neogen Ionics)

Capacity Expansion Projects:

  • Total estimated project cost: ₹1,795 crore (cumulative CAPEX of ₹1,537 crore to date)
  • Dahej Phase 1: ₹428 crore project cost, target completion by February 2027
  • Pakhajan Phase 2: ₹1,367 crore budget, completion expected by March 2027

Project Status:

  • Electrolyte Salts and Additives: 1,500 MTPA capacity
  • 200 MTPA commissioned (first approval material shipped)
  • 1,000 MTPA commissioned in Q2 FY27
  • 300 MTPA trial production ongoing
  • New Electrolyte Salts: 1,000 MTPA capacity
  • 1,000 MT to be commissioned by H2 FY27
  • 500 MT additional intermediate to be commissioned in H2 FY27
  • Electrolyte Plant: 2,000 MT at Dahej facility fully commissioned

Business Development:

  • Electrolyte recipes received from 5-6 giga factories with joint trials underway
  • Provisional approvals secured from 5 major international customers
  • Final site audits completed for 3 US-based electrolyte manufacturers
  • Commercial supply commenced with 2 customers

Corporate Restructuring:

  • Business Transfer Agreement executed between Neogen Ionics Limited (NIL) and Neogen Morita New Materials Limited (NML)
  • Lithium-ion electrolyte salt undertaking consolidated under NML for lump-sum cash consideration of ₹245 crore
  • ₹77 crore already infused by Morita through preference allotment

Management Commentary

Dr. Harin Kanani, Managing Director, stated that the company delivered robust performance despite geopolitical tensions, supply chain disruptions, and rising feedstock costs. The company expects substantial scale-up in Q4 FY27 and beyond for battery chemicals business, supported by upcoming ACC battery manufacturing plants in India and shifting US supply chains. The full-year consolidated guidance remains on track.